Homeowners and Renters Insurance
Homeowners and renters insurance are two different types of coverage that you will need to learn about if you are a landlord or a tenant. A home is a big investment and many people will end up putting hundreds of thousands of dollars into their real estate purchase. Because such a large amount of money goes into a property purchase, some people will decide to rent rooms, homes or condos in order to make their mortgage payments easier or even to make a profit. These kinds of situations call for a specific type of homeowners insurance, and both landlords and renters will want to learn these requirements. The following is some basic information that can help you understand your coverage needs, whether you are a landlord or tenant.
Learning Important Differences
Homeowners and renters insurance are both fairly different. Homeowners insurance will need to be purchased by the actual owner of the property, while the tenant will have the option to buy additional coverage if they see fit. Landlords have the responsibility to get basic hazard coverage for their dwelling that will protect their investment from hazards like fire and storm damage. Some may even decide to purchase additional provisions that will cover hazards like flood and earthquake. This kind of coverage is often legally required of the landlord, and is going to help them protect the actual structure of their home or condo.
Homeowners and renters insurance are different in that the renters are not going to need to purchase protection for the dwelling that they live in, but they will want to consider finding home coverage for their belongings. The owner of the property is not going to be required to purchase a policy for a tenants property and will most likely not be included in their homeowners insurance protection. Therefore, if you are renting and worried about losing your personal property and belongings to a hazard like fire or theft, you will want to look for a renters policy that can give you the right amount of personal property protection.
Homeowners and renters insurance are also unique in that the individual that is renting the property may also want to purchase an increased amount of liability protection. Renters often have the ability to file lawsuits over contract disputes, injuries and a number of other potential problems, and you will want to make sure that you avoid the costs from these kinds of lawsuits with the right liability protection. Make sure to think about your potential liability costs when putting together homeowners and renters insurance.
Homeowners and renters insurance also present some unique tax opportunities for the owner. While normal owners are not going to be able to deduct their homeowners insurance from their annual taxes, some individuals that are renting their property may have that ability. In many cases, landlords can list their coverage costs as a business expense, and will be able to get some pretty impressive tax deductions. Make sure to factor these kinds of deductions into your budget when you are purchasing your policy.
Homeowners Insurance Discounts
While tax deductions represent one way to save on homeowners and renters insurance, and owner may have other ways to save some potential money. For one, search for the companies that will offer you a discount for installing safety devices. For example, an owner that puts in extra fire alarms, sprinkler systems, and security systems, should become eligible for some fairly large discounts. Providers are searching for the customers that are not going to be likely to use their policies, and if they see that you are taking steps to protect your property from hazards, you will be much more likely to get affordable rates on your plan.
Another thing you will want to do in order to save money is to pick your renters carefully. Renters that are not responsible or careful are much more likely to cause mistakes that can lead to expensive property damage, or will also be more likely to open lawsuits against the owner. Make sure to screen the tenants that want to live in your home or condo, and only pick the individuals that seem to be responsible and safe.
When you are searching for homeowners and renters insurance, you will find that there are many companies that sell these kinds of protection. While homeowners and renters insurance are sold by several providers, some are going to be able to give you much more competitive prices and better customer service as well. Therefore, a bit of comparison is usually necessary to find the best possible options and quotes. Compare your choices today, and get the kind of homeowners insurance protection that you need to secure the investment that you have made in your property.